On March 10, Looking for Steel Industry Internet Group (hereinafter: Looking for Steel Network) disclosed prospectus documents on the Hong Kong Stock Exchange and plans to go public through a merger and acquisition transaction with a special purpose acquisition company.
Looking for Steel Net was founded in March 2012. At that time, its founder Wang Dong and co-founders Wang Changhui and Rao Huigang founded Shanghai Gangfu (the predecessor of Looking for Steel Net) to develop online steel trading services in China.
On August 31, 2023, Looking for Steel Network announced the signing of a merger agreement with Aquila to be listed in Hong Kong under the DE-SPAC model, with a valuation of about HK$10 billion. If the deal is successfully completed, Steel Net is expected to be the first company to be listed in Hong Kong under the de-SPAC model.
Following the completion of the merger and acquisition transaction of the special purpose acquisition company, the succession board will be composed of nine directors, including four executive directors, two non-executive directors and three independent non-executive directors. Among them, founders Wang Dong and Wang Changhui are executive directors.
According to public information, Wang Dong, 47, plans to be appointed as the executive director of the successor company, chairman of the succession board of directors, and CEO of the successor group immediately after the completion of the merger and acquisition transaction of the special purpose acquisition company. He will be mainly responsible for the overall strategic planning, business direction and management of the successor company. Wang Dong has been the director and CEO of Steel Network since March 2012.
Wang Dong has over ten years of experience in the steel industry. From July 1999 to November 2008, Wang Dong worked at Henan University of Education and was responsible for setting up the college's website and distance learning courses. From December 2008 to June 2011, Wang Dong was the president of Henan China Steel Mesh Technology Group Co., Ltd. (previously known as Beijing China Steel Network Information Co., Ltd.), responsible for the company's strategic management and daily operations. From 2011/7 to 2011/12, Wang Dong was the president of Steel Mesh E-Commerce (Shanghai) Co., Ltd., responsible for the company's strategic management and daily operations.
Wang Dong graduated from Sichuan University in July 1999, majoring in electrical technology, and obtained a master's degree in software engineering from Huazhong University of Science and Technology in China through in-service graduate studies in December 2007. Currently, Wang Dong is studying for a master's degree in business administration for senior management at Tsinghua Wudaokou University of Finance.
Wang Changhui, 40, plans to be appointed as the executive director of the successor company and chief operating officer of the successor group following the completion of the merger and acquisition transaction of the special purpose acquisition company. He will be mainly responsible for the overall management of the successor company's business operations. Wang Changhui was appointed as the director and chief operating officer of Steel Mesh on February 27, 2012.
Wang Changhui has over 14 years of experience in sales and operation management in the steel industry. From July 2011 to November 2011, Wang Changhui was the sales director of Steel Mesh E-Commerce (Shanghai) Co., Ltd., responsible for domestic business and market development. From September 2008 to July 2011, Wang Changhui was the general sales manager of Henan China Steel Mesh Technology Group Co., Ltd. (previously known as Beijing China Steel Network Information Co., Ltd.), responsible for domestic business and market development.
Wang Changhui obtained a marketing diploma from Henan Finance and Taxation College in China in July 2006. Wang Changhui is currently studying for a Master of Business Administration for senior executives at the China-Europe International Business School (CEIBS).
In terms of performance, from 2021 to 2023, steel mesh revenue was 1,353 million yuan, 905 million yuan, and 1,168 million yuan respectively; losses during the year were 274 million yuan, 366 million yuan, and 469 million yuan respectively; adjusted EBITDA was -180 million yuan, -207 million yuan, and 4.57 million yuan, respectively.
According to Insight Consulting's data, according to the 2022 online steel trading tonnage, Find Steel Net is the world's largest digital platform for tripartite steel trading. According to Insight Consulting data, by connecting major players in the steel trading industry to its digital platform, Find Steel Network is the first in China to provide one-stop B2B integrated services covering the entire value chain of steel trading, including online steel trading, logistics, warehousing and processing, financing solutions, SaaS products, and big data analysis.